Save Article

The End of Japanese Mercantilism

The government-industry alliance that supposedly made Japan an export machine was overrated even in the 1980s.

By

George Melloan

January 27, 2012

News that Japan last year suffered its first trade deficit in 31 years brought out the usual concerns among Japanese mercantilists that the sky was falling. But probably the heavens over Tokyo will remain in place.

A comparison can be made to the Broadway theater district in New York, often referred to as the "fabulous invalid." Fabulous because the marquees light up with new shows and new names yearly and...